The UK Individual Shareholders Society (ShareSoc) is trying to drum up support to fight a proposed pay package for BP CEO Bob Dudley.
ShareSoc has advised its members to vote against the remuneration report resolution that will be voted on at BP’s upcoming annual general meeting.
“We consider the pay of the CEO to be simply too high, and particularly so in a year when the company suffered a record loss of $6.4 billion in 2015. Even so his pay went up by 20%. Part of the reason for the high pay was the excessively complex remuneration scheme,” the group said in a statement.
ShareSoc criticized BP’s pay structure and said it disagreed with an assessment from the company’s remuneration chair that called the pay structure “relatively simple.”
BP has six performance measures tied to Dudley’s bonus, with the bonus being pensionable, along with five performance measured tied to long-
ShareSoc spokesman Cliff Weight said the company’s pay structure “makes it very difficult for shareholders to judge how easy or difficult the targets are” to meet.
BP said in February it will layoff 7,000 employees after reporting a fourth quarter replacement cost loss of $2.23 billion compared to a loss of $969 million a year ago.
The company expects to reduce the number of staff and contractor roles in its upstream segment by around 4,000 during 2016 and cut up to 3,000 staff and contractor positions from its downstream segment by the end of 2017.
BP reported a $3.3 billion fourth quarter loss attributable to shareholders, compared to a $4.4 billion loss in the prior year quarter, and a full year loss attributable to shareholders of $6.48 billion, down from a $3.78 billion profit in 2014.
Earlier this month, a New Orleans federal judge approved a $20 billion settlement to settle civil claims against BP related to the 2010 Deepwater Horizon accident.
The approval will also allow for the implementation of a related settlement of economic damage claims for five Gulf states and local governments.
The five states included in the settlement are Alabama, Florida, Louisiana, Mississippi and Texas.
The funds will be paid out over the course of 16 years.